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I’m an occupier – get me out of here! Top tips on exiting a lease

Dilapidations can be a minefield, and if not managed well, could cost you a hefty bill at the end of your lease. Here are some top tips to help you stay in control when exiting a lease.   

Simon Quirke

Lease Advisory Partner

Let's say that you’ve made a conscious strategic decision to vacate your leased property. You’ve sought advice from our lease advisory experts and served any required notice to your landlord. You’ve advised the team on site, and you’re all set to hand back your keys and sail off into the sunset.

It’s finally time to benefit from those occupational savings, until…..
you receive a rather formal looking notice from your landlord or their solicitor claiming a considerable sum in dilapidations. 

And you’re left wondering.....“What’s this all about? Was this meant for us? What the heck are dilapidations?”

Read this blog for answers to some of these burning questions. So, you can understand dilapidations a little better, smoothly exit your lease and sail off into the sunset, without too much heartache. 

 

Let’s start with what we mean by dilapidations 

Put simply, leases usually require a property to be put back in the same condition as when the lease was originally taken out (or an agreed benchmark). If you’ve left desks in the property, spilt coffee on the carpet, or thrown up walls to create offices, they often all need to be addressed before you leave.  Anything you leave or damage will cost the landlord money to fix; so, dilapidations is effectively your bill for this. 

Here are a few hints and tips to help you manage your dilapidations: 

 

  1. Don’t ignore the notice! - It’s a formal legal document and there are stipulated timescales for response, which leads nicely on to… 
  2. Don’t try to navigate this alone! – Dilapidations is a complex area. Always seek to appoint a qualified, specialist dilapidations surveyor who can advise you and help with navigating to the best outcome.  
  3. Establish what documentation you have - Including plans, leases, certification (electrical / gas testing etc), asbestos registers, licences for alterations etc. All this will help you demonstrate compliance and help your surveyor in fighting a claim.  
  4. Make sure you have a provision for dilapidations within your accounts – Ensure you have money set aside to address any repair issues at the end of your lease. 
  5. Don’t accept the landlord’s notice as full and final – A good surveyor will fight your corner, challenge the landlord and try to reach a settlement which is fair for all.  

 

It pays to be proactive. It’s often better to try to maintain your property in a good condition throughout the lease and repair any damage. Take all your furniture / equipment with you when you leave. Make sure you document everything with the landlord, take lots of photos when you move out, keep hold of emails, certification, meter reads and key correspondence.  

 

Now that you know a little more about dilapidations at lease end (and we’ve only scratched the surface), you can see that dilapidations can be a bit of a minefield, and some consider it a ‘dark art.’

The key takeaway is to make sure you seek advice. It can mean the difference between a hefty bill, or a very palatable one. As an occupier, you can use many arguments to try and limit your dilapidations liability, and a good surveyor will help you explore the avenues to negotiate a successful outcome.  

We're here to help

We’ve managed and agreed over 100 dilapidations claims over the last few years, saving our occupiers and the NHS almost £8.5m in the process. 

Not only do we have our own dilapidations experts within NHS Property Services, but we also have access to a trusted network of consultants to best represent your interests. If you want to learn more about dilapidations, or how we can best support you, download your Introduction to lease advisory or get in touch with our lease advisory team.  

 

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